Kumho Petrochemical Co., the South Jeolla provincial government and a local biotechnology firm agreed Thursday to establish an algae bioethanol plant by 2013, officials said, according to Yonhap News.
The agreement calls for Kumho to invest a total of 200 billion won ($176 million) to build the facility with an annual production capacity of 100,000 tons of algae bioethanol at an industrial complex in the southern coastal city of Yeosu.

"We are taking the first step for algae biofuel production, the promising and growth industry in the region," South Jeolla Gov. Park Jun-young said. "Through the agreement, we expect South Jeolla Province will be able to gain the lead in the bioenergy industry."

Under the agreement, Biosystems Co. will provide "high-pressure liquefying" technology to convert algae into fuel. The company plans to set up a pilot facility by 2011 to produce 4,000 liters of bioethanol per day with an investment of 20 billion won.

Source: The Korea Herald (September 2, 2009)